Fred Magdoff

“Could Food Shortages Bring Down Civilization?,” asks the title of an article by Lester Brown in Scientific American (May 2009). Just a few years ago, such a question would have seemed almost laughable. Few will be surprised by it today.… | more |

In 2008 people woke up to a tsunami of hunger sweeping the world. Although the prospect of rising hunger has loomed on the horizon for years, the present crisis seemed to come out of the blue without warning. Food riots spread through many countries in the global South as people tried to obtain a portion of what appeared to be a rapidly shrinking supply of food, and many governments were destabilized.… | more |

The bursting of the housing bubble and the ensuing financial debacle have left most people, including many economists and financial experts asking: Why did this happen? If they had been reading Monthly Review, and were familiar with such articles as “The Household Debt Bubble,” “The Explosion of Debt and Speculation,” and “The Financialization of Capitalism,” they would not have needed to ask. In their new book, The Great Financial Crisis: Causes and Consequences, Monthly Review editor John Bellamy Foster and long-time Monthly Review contributor, Fred Magdoff, update this analysis, exploring the whole course of what is now known as “the worst financial crisis since the Great Depression”: from the debt explosion and housing bubble to the subprime debacle and federal bailout. They argue that this latest financial crash, although greater than any since 1929, is itself a symptom of deeper problems connected to the stagnation of the “real” or productive economy of mature capitalism. Financial bubbles have become the chief means of countering stagnation, but these inevitably burst, bringing the underlying economic problems back to the surface. The only recourse of the system: new and bigger bubbles, leading, as they too pop, to still greater financial crises and worsening conditions of production—in what has now become a vicious cycle.… | more |

“The first rule of central banking,” economist James K. Galbraith wrote recently, is that “when the ship starts to sink, central bankers must bail like hell.” In response to a financial crisis of a magnitude not seen since the Great Depression, the Federal Reserve and other central banks, backed by their treasury departments, have been “bailing like hell” for more than a year. Beginning in July 2007 when the collapse of two Bear Stearns hedge funds that had speculated heavily in mortgage-backed securities signaled the onset of a major credit crunch, the Federal Reserve Board and the U.S. Treasury Department have pulled out all the stops as finance has imploded. They have flooded the financial sector with hundreds of billions of dollars and have promised to pour in trillions more if necessary—operating on a scale and with an array of tools that is unprecedented.… | more |

The huge increase in oil and other fuel prices over the last few years and a concern that we have reached (or will soon reach) peak oil—after which oil extraction begins to decrease—have created renewed interest in alternative sources of energy. These include solar, wind, ocean wave and tidal flow, geothermal, and biofuels. Sometimes lip service is given to the need for greater energy efficiency, changes in lifestyles (including the ecologically irrational over-reliance on automobiles and living far from one’s job), the need to redesign economic activity from the factory floor to office buildings and homes, and the need for affluent societies to move away from ever higher levels of consumption. However, a radical analysis of actually putting these into effect would lead to questioning the very basics of how capitalism works… | more |

An acute food crisis has struck the world in 2008. This is on top of a longer-term crisis of agriculture and food that has already left billions hungry and malnourished. In order to understand the full, dire implications of what is happening today it is necessary to look at the interaction between these short-term and long-term crises. Both crises arise primarily from the for-profit production of food, fiber, and now biofuels, and the rift between food and people that this inevitably generates…… | more |

In a series of articles in Monthly Review and in Monthly Review Press books during the 1970s and 1980s, Harry Magdoff and Paul Sweezy proposed that the general economic tendency of mature capitalism is toward stagnation. A shortage of profitable investment opportunities is the primary cause of this tendency. Less investment in the productive economy (the “real economy”) means lower future growth. Marx wrote about the possibility of this very phenomenon… | more |

Harry died in the early hours of January 1, 2006, at our house in Burlington, Vermont, where he had lived for three and a half years. As he died, I laid on the big double bed facing him and held his arms, with my wife, his caregiver, and his good friends Gladys and Percy Brazil there too. Talking with them after he died I reflected on how it had been an honor to have Harry live with Amy and me since my mother Beadie had died and to help him get the most out of his final years. It was also fun and intellectually stimulating, although sometimes a challenge because of my health problems and our work schedules… | more |

Among the arguments against socialism is that it goes against human nature. “You can’t change human nature” is the frequently heard refrain. That may be true of basic human instincts such as the urge to obtain food to eat, reproduce, seek shelter, make and wear protective clothing. However, what has usually been referred to as “human nature” has changed a great deal during the long history of humankind. As social systems changed, many habits and behavioral traits also changed as people adapted to new social structures. Anatomically modern humans emerged some 150,000 to 200,000 years ago. Over the tens of thousands of years since, many different kinds of social organizations and societies have developed. Initially, most were based on hunting and gathering, while for about the last 7,000 years many have been based on agriculture. These societies were organized as clans, villages, tribes, city-states, nations, and/or empires… | more |

These are difficult times for workers. In the wealthy countries of capitalism’s center, labor is struggling to maintain existing wages and benefits against a combined assault by corporations and governments, while conditions of workers in the periphery are even more difficult. The widespread acceptance and adoption of capital’s agenda—”free trade,” “free markets,” greater “flexibility” regarding labor, and reduced social welfare assistance—has led to one group of real winners. Transnational corporations (and their owners and top managers) now have more freedom to produce where labor and other costs are cheap, have their patents protected, and move capital in and out of countries at will. Many workers, unfortunately, are finding that their situation has become more tenuous.… | more |

The number of people living a precarious existence has been increasing in many countries of the world, with hunger all too widespread. There are approximately 6 billion people in the world, with about half living in cities and half in rural areas. Between the poor living in cities and those in rural areas, a vast number of the world’s people live under very harsh conditions. It is estimated that that about half of the world’s population lives on less than two dollars per day, with most of those either chronically malnourished or continually concerned with where their next meal will come from. Many have no access to clean water (1 billion), electricity (2 billion), or sanitation (2.5 billion)… | more |

History has provided us with numerous examples of economic stagnation and breakdown, as well as environmental degradation caused by human activity, even before capitalism existed. But capitalism’s central characteristic—the incessant drive to invest and accumulate wealth—gives birth to never-ending economic and environmental crises… | more |

The agribusiness/food sector is the second most profitable industry in the United States — following pharmaceuticals — with annual sales over $400 billion. Contributing to its profitability are the breathtaking strides in biotechnology coupled with the growing concentration of ownership and control by food’s largest corporations. Everything, from decisions on which foods are produced, to how they are processed, distributed, and marketed is, remarkably, dictated by a select few giants wielding enormous power. More and more farmers are forced to adopt new technologies and strategies with consequences potentially harmful to the environment, our health, and the quality of our lives. The role played by trade institutions like the World Trade Organization, serves only to make matters worse. … | more |